Chemed (CHE) Q3 2026 Earnings Report
MX:CHE Q3 2026 EPS Results
- Actual EPS
- MXN 126.85
- Consensus EPS
- MXN 120.95
- Beat/Miss
- Beat by +MXN 5.90
- One Year Ago EPS
- MXN 99.03
MX:CHE Q3 2026 Revenue Results
- Actual Revenue
- MXN 12.98B
- Expected Revenue
- MXN 12.87B
- Beat/Miss
- Beat by +MXN 110.93M
- YoY Revenue Growth
- +10.57%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
MX:CHE Upcoming Earnings
Chemed's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CHE Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. VITAS delivered substantial revenue, earnings, admissions, census, margin, and Medicare cap improvements, while Roto-Rooter produced solid revenue and same-store growth, improved collections, and strategic franchise expansion. The principal challenges were Roto-Rooter's declining EBITDA and margin due to marketing and fuel costs, lower near-term margins from acquired franchises, nursing wage growth above reimbursement growth, shorter VITAS length of stay, and increased regulatory review activity. Management nevertheless expressed confidence in full-year adjusted EPS performance and the long-term prospects of both businesses.
Company Guidance
Management expects no Medicare cap billing limitation for the Florida combined program in the 2027 Medicare cap year; the pattern of high admissions from hospital and nonhospital settings is expected to continue for the remainder of 2026 and all of 2027; Roto Rooter is expected to return to its historic pattern through 2027 and beyond, although there is no budget yet for 2027 and no specifics were provided; the company expects to finish 2026 at or slightly above the high end of its full year 2026 adjusted EPS guidance; the California acquisition is expected to generate first year estimated revenue somewhere in the $30 to $35 million range and less than $4 million in EBITDA, with a 12 to 18 month process to implement the full Roto Rooter operating model; both cost headwinds are anticipated to persist in the fourth quarter; and no material increase in recruiting cost is anticipated for 2027.
- Strong VITAS Revenue and Earnings GrowthVITAS revenue increased 12.2% in the third quarter of 2026 to $457.4 million, while adjusted net income increased 44.7% compared with the third quarter of 2025. The growth was driven primarily by a 9.4% increase in days of care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%.
- VITAS Admissions and Census GrowthVITAS admissions totaled 19,000, an improvement of 7.2% from the same period of 2025. Average daily census was 24,428 patients, an increase of 9.4%. Hospital-directed admissions increased 5.7%, home-based patient admissions increased 6.3%, assisted living facility admissions increased 8.1%, and nursing home admissions increased 9.8%.
- Balanced VITAS Referral Mix and Medicare Cap PositionHospital admissions represented 42.3% of total admissions for the Florida combined program, within the stated 42% to 45% range considered appropriate for long-term stability. Admissions from other preadmission locations in the Florida combined program increased 11.1%. The Florida combined program ended the 2026 Medicare cap year with a cushion of more than $34 million, and management does not anticipate a Medicare cap billing limitation for the 2027 Medicare cap year. The non-Florida programs ended approximately $3 million below the original Medicare cap billing limitation projection.
- VITAS EBITDA Margin and Cost ControlVITAS adjusted EBITDA, excluding Medicare cap, was $92.5 million, an increase of 31.4%. Adjusted EBITDA margin excluding Medicare cap was 20.2%. Management attributed the margin level to continued cost control, enhanced electronic staffing tools, staffing flexibility, and a $2.1 million decline in selling, general, and administrative costs compared with the third quarter of 2025.
- VITAS Staffing and Recruiting StabilityAlthough full-time equivalents were below estimated totals for most of the quarter, hiring was ramped up in September and staffing was in line with the overall budgeted metric at quarter-end. Management stated that it has not experienced issues hiring or retaining qualified caregivers, that wage pressure has not impeded hiring or growth, and that no material increase in recruiting costs is anticipated for 2027.
- Roto-Rooter Revenue and Same-Store GrowthRoto-Rooter total revenue increased 7.5% in the third quarter of 2026, with growth across all major service lines and both residential and commercial businesses. Same-store revenue increased 5.5%, exceeding internal expectations. Branch commercial revenue increased 9% to $59.9 million, while branch residential revenue increased 5.2% to $158.8 million.
- Commercial Business Manager Program PerformanceThere were 36 productive commercial business managers in place for the entire quarter. Branches with a commercial business manager achieved approximately 10.9% commercial revenue growth, compared with 4.8% growth in branches without one.
- Improved Water Restoration Collections and PricingCentralization of water restoration billing and collections improved collections, with total write-offs improving by $2.9 million compared with the third quarter of 2025. Average price per water restoration job increased 2.8%, reversing a multi-quarter downward trend.
- Consolidated Revenue and Adjusted EPS GrowthThe combination of VITAS and Roto-Rooter drove a 10.6% increase in total Chemed revenue and a 28.1% increase in adjusted diluted earnings per share compared with the third quarter of 2025.
- Strong Cash Flow and Financial FlexibilityDuring the first nine months of 2026, Chemed generated more than $229 million of cash flow from operations. Management stated that minimal leverage provides flexibility to pursue strategic acquisitions and meaningful share repurchases.
- Share RepurchasesChemed repurchased 125,000 shares during the quarter for $66 million, or $528.24 per share. Over the trailing 12 months, the company repurchased 1.24 million shares at an average price of $427.62 per share. Approximately $73.7 million of share repurchase authorization remained as of September 30.
- Full-Year 2026 Adjusted EPS OutlookBased on results through September 30, 2026, management expects to finish the year at or slightly above the high end of its full-year 2026 adjusted EPS guidance. Management noted that VITAS performed above guidance while Roto-Rooter income was lower than guidance, changing the expected contribution by operating unit.
- Roto-Rooter Franchise ReacquisitionsRoto-Rooter reacquired multiple California franchise territories for approximately $62.5 million. The territories cover a population of more than 12 million people and had prior annual revenue of between $50 million and $55 million. In 2026, Chemed spent $96 million to reacquire Roto-Rooter franchises, primarily in Texas and California.
- Long-Term Potential of Acquired TerritoriesThe California acquisition is expected to generate first-year revenue of approximately $30 million to $35 million, with less than $4 million of EBITDA initially. Management expects to establish new branches in Sacramento and San Diego, absorb other territories into existing branches, and integrate the acquired operations into the Roto-Rooter model over time.
- Roto-Rooter Free-Lead Initiatives and Brand StrengthRoto-Rooter has an app with more than 300,000 downloads and receives approximately 1,000 to 1,500 leads per week directly from the app. Management also cited leads from commercial business managers, Google Maps, customer referrals, service stickers, and increasing AI searches. More than 50% of Roto-Rooter customers are repeat customers, and management stated that the service mark provides a natural floor for organic leads.
- Evidence of Roto-Rooter Market Share GainsManagement stated that 5.5% same-store revenue growth is higher than the historical annual growth of the overall industry and concluded that Roto-Rooter is taking market share at least to some degree, particularly from smaller and less sophisticated plumbing companies.
- VITAS Positioning and Access OpportunityVITAS reported balanced growth across Florida and non-Florida markets, with particularly strong growth in Southern California. Management stated that the company has benefited from migration toward a more stable and trusted end-of-life-care provider and noted that only a little over half of Medicare deaths in the United States currently receive the Medicare hospice benefit, leaving additional access and education opportunities.
- Potential Expansion Within Roto-RooterManagement stated that it continues to focus on building the two existing brands, while considering smaller hospice acquisitions and additional Roto-Rooter service lines. Re-entering HVAC in selected geographies was described as more likely than pursuing a completely new business, although no new business expansion was imminent.
MX:CHE Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 138.16- | 120.64 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 120.95126.85 | 99.03 | 28.08% (+27.81) | |
| Jul 28, 2026 | 2026 (Q2) | 105.24113.88 | 80.24 | 41.92% (+33.64) | |
| Apr 23, 2026 | 2026 (Q1) | 99.64106.18 | 105.8 | 0.36% (+0.38) | |
| Feb 25, 2026 | 2025 (Q4) | 132.11120.64 | 128.35 | -6.00% (-7.70) | |
| Oct 31, 2025 | 2025 (Q3) | 100.8299.03 | 105.99 | -6.56% (-6.95) | |
| Jun 30, 2025 | 2025 (Q2) | 96.2280.24 | 102.79 | -21.94% (-22.55) | |
| Apr 23, 2025 | 2025 (Q1) | 104.24105.80 | 97.72 | 8.27% (+8.08) | |
| Feb 26, 2025 | 2024 (Q4) | 127.47128.35 | 124.03 | 3.48% (+4.32) | |
| Oct 29, 2024 | 2024 (Q3) | 106.08105.99 | 99.97 | 6.02% (+6.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
